9911796707
TMI Blog2019 (7) TMI 1453X X X X Extracts X X X X X X X X Extracts X X X X ..... ents intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 or Chapter 85, than the whole falls to be classified in the heading appropriate to that function and are to be classified as being that machine which performs the principal function. In the purchase order and sale invoice of the applicant it is seen that the supply is a geared motor which is a single supply and not two individual supply of gear boxes and electric motors. They are fitted together, assembled and supplied by the applicant. Therefore, this is not a mixed supply as claimed by the applicant. In view of the above, it can be held that the 'Gear Motor' is rightly to be classified under CTH 8501. Whether the gear motors can be considered as 'gears' and 'gearings'? - scope of Advance Ruling - HELD THAT:- The Act limits the Advance Ruling Authority to decide the issues earmarked for it under Section 97(2) and no other issue can be decided by the Advance Ruling Authority. The question raised does not fit in any of the clauses of Section 97(2) of the CGST Act / Tamil Nadu GST Act (TNGST) and therefore not answered for the reason not within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equired. Gearbox coupled with electric motor is a transmission machine in a power transmission system, which provides controlled application of the power. Often the term transmission refers simply to the gearbox that uses gears and gear trains to provide speed and torque conversions from a rotating power source to another device. Geared motor is a single unit consisting of gear box and electric motor. Electric motor is a bought out item. Gear boxes are manufactured by them. Gear boxes and electric motor is coupled and integrated and it is a mixed supply . It is supplied by them as gear motor. The principal and predominant function of gear motor, which is transmission of power for the required application by changing the speed and torque, is that of the gear box. Thus, the Applicant states that the principal supply is gear box. Gear/ gear rings cannot be equated with the gear motor. 2.1 The Applicant has further stated that the Chapter 85 is governed by Section Notes to Section XVI of the First Schedule to the Customs Tariff Act, 1975. The following Section Notes are crucial to determine the classification of gear motors. 3. Unless the context other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansmission of power for the required application by changing the speed and torque, is that of the gear box and hence the principal supply is gear box. During prc GST period, this product was classified under 8483 as per Central Excise Tariff Act, 1985. In the GST re gime, the Applicant has classified the same under 8483 of the Customs Tariff Act and paid CGST (Sl. No. 135 Schedule-IV of Notification 1/2017-Centra1 Tax (Rate) SGST of corresponding TNGST Notification 62 CT R (B1), dated 29-6-2017 (Sl. No. 135 of Schedule-IV of the TNGST Act, 2017). Till 14-11-2017, the entire Chapter Heading 8483 (Transmission shafts (including cam shafts and crank shafts) and cranks; bearing housings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints)) was covered by Sl. No. 135-Schedule IV of Notification 1/2017. Vide Notification 41/2017-C.T. (Rate), dated 14-11-2017, portion of heading 8483 i.e. Crank shaft for sewing machine, bearing housings; plain shaft bearings; gears and gearing; ball or roller ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith standard dimensions and characteristics provide convenient mechanical power for industrial use. 4. The applicant was offered an opportunity to be heard again on 12-3-2019 due to change in the SGST Member of the Authority and was heard. The Applicant appeared and reiterated the written submissions made by the Applicant. They stated that HSN Explanatory Notes states the product to be classified under 8501. However, Chapter Notes seems to state it as 8483 as a mixed supply. However, from January 2019, 8483 is also under 18%, though it was 28% before. In central Excise, they were classifying as 8483. 5 . The various documents submitted by the applicant were examined. The company profile indicates that the applicant supplies gear reducers and gear motors of various types such as worm, coaxial, helical and bevel-helical. The purchase order shows Geared Motor worm gear Motor with specifications and the corresponding sale invoices show Worm gear motor with HSN 8483. The relevant import invoice from related party shows Worm gear motor without motor and the import Bill of entry for worm gear motor without motor (part for gear motor) with HSN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of this notification. Accordingly, to arrive at the classification, the respective chapter headings, Chapter Note, Section Notes are to be seen. 7.1 From the various submissions of the applicant, it is evident that the applicant is engaged in the manufacture of Geared motors which consists of Electric motor and Gear boxes. Electric Motor is a bought out item either locally or imported from their related party. Gear reducers or gear boxes are imported from their related party. Both are assembled in India by the applicant depending on the specifications given by their buyers. Gear motor is a single unit consisting of gear box and electric motor, coupled and integrated. Customs Tariff Heading 8483 of Customs Tariff Act, 1975, reads as follows : 8483 TRANSMISSION SHAFTS (INCLUDING CAM SHAFTS AND CRANK SHAFTS) AND CRANKS ; BEARING HOUSINGS AND PLAIN SHAFT BEARINGS ; GEARS AND GEARING; BALL OR ROLLER SCREWS ; GEAR BOXES AND OTHER SPEED CHANGERS, INCLUDING TORQUE CONVERTERS; FLYWHEELS AND PULLEYS, INCLUDING PULLEY BLOCKS ; CLUTCHES AND SHAFT COUPLINGS (INCLUDING UNIVERSAL JOINTS) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 84835090 - Other u 7.5% - 848360 - Clutches and shaft couplings (including universal joints): u 7.5% - 84836010 ---Flexible coupling u 7.5% - 84836020 ---Fluid coupling u 7.5% - 84836090 ---Other u 7.5% - 84839000 -Toothed wheels, chain sprockets and other transmission elements presented separately; parts u 7.5% - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h gears or gear boxes. 7.3 Section Notes 3 to 5 of Section XVI covering Chapter 84 and 85 of the First Schedule to the Customs Tariff Act, 1975 states : 3. Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function 4. Where a machine (including a combination of machines) consists of individual components (Whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 or Chapter 85, than the whole falls to be classified in the heading appropriate to that function . 5. For the purposes of these Notes, the expression machine means any machine, machinery, plant, equipment, apparatus or appliance cited in the headings of Chapter 84 or 85 It is seen from the above that comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the submissions it is inferred that 'gears and gearings' without motors are mentioned as 'Gears and gearings' while gearbox with motor are termed as 'Gear motors'. However, Section 97(2) of the CGST Act / Tamil Nadu GST Act (TNGST) which gives the scope of Advance Ruling Authority, i.e., the question on which the Advance Ruling can be sought is reproduced as under : 97(2) The question on which the advance ruling is sought under this Act, shall be in respect of, - (a) classification of any goods or services or both; (b) applicability of a notification issued under the provisions of this Act; (c) determination of time and value of supply of goods or services or both; (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods or services or both; (f) whether applicant is required to be registered; (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meanin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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